The Manufacturing sector covers work performed in mechanical, physical, or chemical transformation of materials, substances, or components into new products. The assembling of component parts of manufactured products also falls under Manufacturing unless the activity is appropriately classified in Construction.

The Construction sector primarily covers work performed in the construction of buildings or engineering projects (e.g., highways and utility systems). Companies that perform work in the preparation of sites for new construction and those involved subdividing land for sale as building sites also are included in Construction.

Manufacturing uses raw materials that are products of agriculture, fishing, forestry, mining, or quarrying, as well as products of other manufacturing operations. Plants, factories, or mills that characteristically use power-driven machines and materials-handling equipment, transform the raw materials into new finished products or components of products that require further manufacturing.

Construction markets include new work, additions, alterations, or maintenance and repairs. Activities of these enterprises generally are managed at a fixed place of business, but they usually perform construction activities at multiple project sites. Production responsibilities are specified contractually with construction project owners (prime contractors) or contracts with other construction companies (subcontractors).

Construction companies that contract responsibility for all aspects of individual construction projects are commonly known as general contractors, but are also markets known as design-build, construction management, turnkey contracting, or (in cases where two or more establishments jointly secure a general contract) joint-venture contracting. Construction managers that provide oversight and scheduling only (i.e., agency) as well as construction managers that are responsible for the entire project (i.e., at risk) are included as general contractor type establishments. General contractor types frequently arrange construction of separate project parts through subcontracts with other construction companies,
such as masonry, painting, and electrical work). These are commonly known as specialty trade markets. In remodeling and repair construction, work may also be done directly for the owner of the property.

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